Re Contract

Balfour Beatty PLC
02 December 2003


2 December 2003


      €150 MILLION OF NEW RAIL WORK FOR BALFOUR BEATTY RAIL POWER SYSTEMS
      ===================================================================

Balfour Beatty, the international engineering, construction and services group,
announces today that Balfour Beatty Rail Power Systems (BBRPS), its German-based
rail electrification and power supply company, has won new work for six European
network owners to a total value of €150 million.

Commenting today, Mike Welton, Balfour Beatty Chief Executive, said: 'We are
acknowledged world leaders in rail electrification. These contracts demonstrate
a pattern of continuing investment by rail network owners across Europe, in
which our technology and expertise play a critical role.'

The biggest of the new contracts is as main contractor for technical equipment
for the new 9 km North-South track running underground through the centre of
Berlin. The contract involves project management and the supply of overhead
contact line, overhead conductor rail, power supply units and electrotechnical
equipment. The project will be completed in time for the 2006 Soccer World Cup
competition.

In Holland, BBRPS has been appointed by ProRail, in consortium with Nuon, a
Dutch utility company, to provide the traction power supply and auxiliary power
supply systems for Betuweroute's new freight line which will link Rotterdam
harbour to the German border.

In Ireland, BBRPS has been awarded two contracts by the Dublin City Rail Network
for the design, installation and commissioning of traction power supply and
overhead line equipment for the capacity expansion of the Dublin network.

Both the Irish and Dutch contracts are due for completion in 2005.

In Italy, the company has won an order for engineering, supply and erection of
three new 132 kV/3 kV dc electrical converter substations including building and
relevant civil works as well as SCADA systems.

In Portugal, the business has been selected by Metro do Porto for the extension
to Antas Stadium and the duplication of the first part of line 'T' to Trofa. The
project scope is for design, supply, installation, test and commissioning of
catenary and a wide variety of other technical equipment including ticketing,
lifts and escalators, video circuits and passenger information systems. The
project is to be completed for the European Football Championship in 2004.

In the UK, BBRPS is supplying specialised switchgear equipment for Network
Rail's Southern Region Power Upgrade Project.

                                      ENDS

Enquiries to:
Tim Sharp
Tel: [phone]
www.balfourbeatty.com


Notes to Editors
----------------

1. Balfour Beatty's annual worldwide rail sales exceed £800 million, of which
   approximately half are in the UK. Other major countries of operation are the 
   US, Germany, Italy, Sweden, Austria, Spain, Portugal, Greece and South 
   America.

2. Balfour Beatty's rail electrification expertise is critical to many important
   rail development projects. Among major current projects are:

   - the electrification of the West Coast Main Line in the UK

   - the electrification of the line linking Milan and Turin, the latest in a
     series of such projects connecting Italy's major cities

   - the electrification of the Rawang-Ipoh segment of the main North-South 
     railway line in Malaysia

   - the turnkey project for the extension of the Porto Metro system in 
     Portugal.

3. Balfour Beatty has a significant presence in the US rail industry with
   specialist companies in trackwork, signalling, plant and maintenance. Its
   largest current project is for the new $200m+ Greenbush commuter line along
   Boston's South Shore.



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